What is planning area in SAP SCM-APO - Advanced Planning and Optimization?

SAP Term: planning area

• Component: SCM-APO

• Component Name: Advanced Planning and Optimization

• Description: Central data structure of Demand Planning and Supply Network Planning. The planning area is created as part of the Demand Planning/Supply Network Planning setup. A planning book is based on a planning area. The end user is aware of the planning book, not the planning area. The liveCache objects on which data is actually saved are based on the planning area, not the planning book. The planning area specifies the following: Unit of measure in which data is planned Currency in which data is planned optional Currency conversion type for viewing planning data in other currencies optional Storage buckets profile that determines the buckets in which data is stored in this planning area Aggregate levels on which data can be stored in addition to the lowest level of detail in order to enhance performance Key figures that are used in this planning area Settings that determine how each key figure is disaggregated, aggregated, and saved The assignment of key figures to agg

Smart SAP Assistant

• Key Concepts: 
  A planning area is a logical grouping of master data objects in SAP Advanced Planning and Optimization (SCM-APO). It is used to define the scope of planning activities and to control the flow of data between different planning objects. The planning area is the highest level of organization in the APO system and contains all the necessary information for planning. 
  
  How to use it: 
  The planning area is used to define the scope of planning activities and to control the flow of data between different planning objects. It can be used to define the characteristics of a product, such as its production process, its supply chain, and its demand. It can also be used to define the relationships between different products, such as their dependencies and interdependencies. 
  
  Tips & Tricks: 
  When creating a planning area, it is important to consider the scope of the planning activities that will be conducted within it. This will help ensure that all necessary data is included in the planning area and that it is organized in a way that makes sense for the specific planning activities. 
  
  Related Information: 
  For more information on SAP Advanced Planning and Optimization (SCM-APO), please refer to SAP's official documentation: https://help.sap.com/viewer/product/SAP_APO/7.5/en-US